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Client Update: Loan Repayments

The global health crisis has impacted economies around the world. In response to this, our Federal and State Governments has announced stimulus measures to assist individuals, families and businesses throughout the crisis. Major banks and financial institutions have also stepped in, offering assistance to customers in the form of repayment assistance and government-secured SME loans.

Over the last few weeks, we have spoken with several lending clients about their current circumstances. Based on the available support from lenders, we have summarised our key recommendations.

My circumstances are unchanged ….

If you are still gainfully employed or operating an essential business, then we would suggest you continue to make loan repayments as usual. If you can, we would encourage you to review your current interest rates by contacting our office. You may also choose to accelerate your payments. Clients can explore pausing repayments, however, this will ultimately lead to a longer loan term and higher interest costs over the long run.

I have lost my job, or my business has closed …

If you have unfortunately lost your job or been forced to close as a non-essential business, don’t bury your head in the sand. If you have a reasonable savings buffer, then we would suggest you consider using this to ride out the crisis. If not, take immediate action and contact our office to discuss your circumstances.

In most cases, your lender may be able to offer you a repayment pause. This allows you to pause loan repayments for 3-6 months while you get back on your feet. During this pause period, interest on your loan will continue to accumulate. After this period, you can choose to either increase your payments or extend the loan term at the banks’ discretion.

In extreme cases, customers may also be able to claim financial hardship, although this is something you’ll need to discuss with your lender.

I have a business, tell me about the SME loans …

Major banks are offering businesses who need cash flow injections with three-year loans of up to $250,000, with no repayments for six months. Similar to the payment pause, interest on the loan will accumulate during the initial period and be added to the loan value. To discuss the application process and your eligibility, feel free to contact our office.

Stay positive and talk openly …

Regardless of your circumstances, we want to remind you that we’re all in this together. Our lending team is ready to assist with your loan enquiries and help you navigate this challenging period.

We would also encourage you to stay positive and talk regularly with family and friends, particularly if you have lost your job or have had to close your business temporarily. Your physical and mental health is now more critical than ever and being open and honest will ensure you get the support you need.

Talk to Jenny, our lending specialist ...

To discuss your lending requirements contact Jenny Sells (03) 5331 3711 or complete the enquiry form on this page.

Accredited National Mortgage Broker

PPT Capital Pty Ltd (ABN 33 283 085 421, Credit Representative Number 393944) has access to a panel of lenders through National Mortgage Brokers Pty Ltd (ACN 093 874 376 / Australian Credit Licence 391209), which is a fully-owned subsidiary of Liberty Financial Pty Ltd (ACN 077 248 983 / Australian Credit Licence 286596). PPT Capital Pty Ltd has access to products including those from Liberty Financial.

DISCLAIMER: The material and contents provided in this publication are informative in nature only. It is not intended to be advice and you should not act specifically on the basis of this information alone.  If expert assistance is required, professional advice should be obtained.

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